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Beef Industry.

Dáil Éireann Debate, Wednesday - 13 October 2004

Wednesday, 13 October 2004

Questions (13)

Gerard Murphy

Question:

14 Mr. Murphy asked the Minister for Agriculture and Food her plans to assist the beef industry and if she will make a statement on the matter. [24440/04]

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Written answers

The focus of the Irish beef industry has been on broadening and expanding its market reach at EU retail level, shifting its orientation away from international commodity markets and into the higher priced internal EU marketplace. It has also eliminated its dependence on export measures such as intervention. This contrasts sharply with the situation that prevailed throughout the 1990s when the industry exported 50% of its products into non-EU markets. Last year, this share dropped to just 17% while the EU share increased proportionately.

Non-EU markets continue to be important outlets for Irish beef and the maintenance of an appropriate export refund policy, which I keep under close review, is a key ingredient in the promotion of beef in third countries. I will continue to press hard for the re-opening of traditional third country markets and I was particularly pleased to announce the re-opening of the Algerian market last week.

Increased sales into Continental Europe coincided with the emergence of an EU market deficit in beef for the first time in 25 years together with falling production levels aligned with a strong recovery in consumption. Ireland is now well placed to consolidate this position and to move further up the value chain, having demonstrated the quality and safety of Irish beef through its broad appeal to EU consumers. A targeted approach based on quality production represents the best and most profitable way forward for the Irish industry. This is particularly the case in the post-decoupling context when the market will be the sole determinant of the nature and scale of output from the sector. In such a context there will be a need for even greater emphasis on good breeding policies, payment related to quality and sophisticated and integrated supply and purchasing systems.

Ireland will shortly be among the first EU countries to classify beef carcases by mechanical means. This will not only enhance the producer processor supply chain but it will also provide wider benefits to the industry as Ireland consolidates its position as a supplier of top quality beef to the consumer markets of the EU. The installation of mechanical grading machines is supported by a grant scheme from my Department.

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